HEICO CORP MANAGEMENT REPORT AND DISCUSSION OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q)

Insight

This discussion of our financial condition and results of operations should be
read in conjunction with our condensed consolidated financial statements and
notes thereto included herein. The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities as of the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ materially from those estimates if
different assumptions were used or different events ultimately transpire.

Our critical accounting policies, which require management to make judgments
about matters that are inherently uncertain, are described in Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," under the heading "Critical Accounting Policies" in our Annual
Report on Form 10-K for the year ended October 31, 2021. There have been no
material changes to our critical accounting policies during the six months ended
April 30, 2022.

Our business is comprised of two operating segments: the Flight Support Group
("FSG"), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support
Corp. and their respective subsidiaries; and the Electronic Technologies Group
("ETG"), consisting of HEICO Electronic Technologies Corp. and its subsidiaries.

Our results of operations in fiscal 2022 continue to reflect the adverse impact
from the COVID-19 global pandemic (the "Pandemic"). Despite the aforementioned,
we experienced continued improvement in operating results in the first six
months and second quarter of fiscal 2022 as compared to the first six months and
second quarter of fiscal 2021 principally reflecting improved demand for our
commercial aerospace products. The Flight Support Group has reported seven
consecutive quarters of improvement in net sales and operating income resulting
from signs of commercial air travel recovery in certain domestic travel markets,
moderated by a slower recovery in international travel markets.

Additionally, our results of operations for the six and three months ended April
30, 2022 have been affected by the fiscal 2021 acquisitions as further detailed
in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements of
our Annual Report on Form 10-K for the year ended October 31, 2021 and the
fiscal 2022 acquisitions as further detailed in Note 2, Acquisitions, of the
Notes to the Condensed Consolidated Financial Statements of this quarterly
report.





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Operating results

The following table sets forth the results of our operations, net sales and
operating income by segment and the percentage of net sales represented by the
respective items in our Condensed Consolidated Statements of Operations (in
thousands):

                                                  Six months ended April 30,                                Three months ended April 30,
                                               2022                          2021                         2022                         2021
Net sales                                       $1,029,156                     $884,553                     $538,813                     $466,651
Cost of sales                                      627,717                      546,346                      327,584                      286,878
Selling, general and administrative
expenses                                           179,840                      161,174                       88,452                       83,025
Total operating costs and expenses                 807,557                      707,520                      416,036                      369,903
Operating income                                  $221,599                     $177,033                     $122,777                      $96,748

Net sales by segment:
Flight Support Group                              $578,994                     $429,614                     $306,313                     $230,280
Electronic Technologies Group                      459,729                      466,639                      237,393                      243,089
Intersegment sales                                  (9,567)                     (11,700)                      (4,893)                      (6,718)
                                                $1,029,156                     $884,553                     $538,813                     $466,651

Operating income by segment:
Flight Support Group                              $118,573                      $61,298                      $66,197                      $35,476
Electronic Technologies Group                      121,576                      131,422                       65,988                       71,294
Other, primarily corporate                         (18,550)                     (15,687)                      (9,408)                     (10,022)
                                                  $221,599                     $177,033                     $122,777                      $96,748

Net sales                                            100.0  %                     100.0  %                     100.0  %                     100.0  %
Gross profit                                          39.0  %                      38.2  %                      39.2  %                      38.5  %
Selling, general and administrative
expenses                                              17.5  %                      18.2  %                      16.4  %                      17.8  %
Operating income                                      21.5  %                      20.0  %                      22.8  %                      20.7  %
Interest expense                                        .2  %                        .5  %                        .2  %                        .4  %
Other income                                            .1  %                        .1  %                        .1  %                        .1  %
Income tax expense                                     3.2  %                       2.4  %                       5.4  %                       4.0  %
Net income attributable to
noncontrolling interests                               1.5  %                       1.3  %                       1.5  %                       1.2  %
Net income attributable to HEICO                      16.7  %                      16.0  %                      15.8  %                      15.1  %










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Comparison of the first six months of fiscal 2022 and the first six months of fiscal 2021

Net sales

Our consolidated net sales in the first six months of fiscal 2022 increased by
16% to a record $1,029.2 million, up from net sales of $884.6 million in the
first six months of fiscal 2021. The increase in consolidated net sales
principally reflects an increase of $149.4 million (a 35% increase) to $579.0
million in net sales within the FSG, partially offset by a decrease of $6.9
million (a 1% decrease) to $459.7 million in net sales within the ETG. The net
sales increase in the FSG reflects strong organic growth of 26% as well as net
sales of $36.3 million contributed by our fiscal 2021 and 2022 acquisitions. The
FSG's organic growth reflects increased demand for the majority of our
commercial aerospace products and services resulting from continued recovery in
global commercial air travel as compared to the prior year. As such, organic net
sales increased by $62.8 million, $30.5 million and $19.8 million within our
aftermarket replacement parts, repair and overhaul parts and services and
specialty products product lines, respectively. The net sales decrease in the
ETG principally reflects a 3% decrease in organic net sales, partially offset by
$10.4 million contributed by our fiscal 2021 and 2022 acquisitions. The ETG's
organic net sales decline is mainly attributable to decreased demand for our
defense products resulting in a net sales decrease of $36.7 million, partially
offset by increased demand for our medical, other electronics,
telecommunications and space products resulting in net sales increases of $9.2
million, $4.9 million, $3.3 million and $2.2 million, respectively. Although
sales price changes were not a significant contributing factor to the change in
net sales of the FSG and ETG in the first six months of fiscal 2022, recent cost
inflation and potential supply chain disruptions may lead to higher sales prices
during the remainder of fiscal 2022.

Gross profit and operating expenses

Our consolidated gross profit margin increased to 39.0% in the first six months
of fiscal 2022, up from 38.2% in the first six months of fiscal 2021,
principally reflecting a 3.8% improvement in the FSG's gross profit margin,
partially offset by a .6% decrease in the ETG's gross profit margin. The
increase in the FSG's gross profit margin principally reflects the previously
mentioned higher net sales across all product lines. The reduction in the ETG's
gross profit margin principally reflects the decrease in net sales of defense
products and an increase in new product research and development expenses as a
percentage of net sales to support ongoing new product research and development
activities. Total new product research and development expenses included within
our consolidated cost of sales were $37.1 million in the first six months of
fiscal 2022, up from $34.2 million in the first six months of fiscal 2021.

Our consolidated selling, general and administrative ("SG&A") expenses were
$179.8 million in the first six months of fiscal 2022, as compared to $161.2
million in the first six months of fiscal 2021. The increase in consolidated
SG&A expenses principally reflects costs incurred to support the previously
mentioned net sales growth resulting in increases of $6.3 million and $6.1
million in general and administrative expenses and selling expenses,
respectively. Additionally, the increase in consolidated SG&A expenses reflects
$6.3 million attributable to our fiscal 2021 and 2022 acquisitions.


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Our consolidated SG&A expenses as a percentage of net sales decreased to 17.5%
in the first six months of fiscal 2022, down from 18.2% in the first six months
of fiscal 2021. The decrease in consolidated SG&A expenses as a percentage of
net sales principally reflects the efficiencies realized from the higher net
sales, as a well as a .4% impact from lower intangible asset amortization
expense and a .2% favorable impact from changes in the estimated fair value of
accrued contingent consideration.

Operating result

Our consolidated operating income increased by 25% to a record $221.6 million in
the first six months of fiscal 2022, up from $177.0 million in the first six
months of fiscal 2021. The increase in consolidated operating income principally
reflects a $57.3 million increase (a 93% increase) to a record $118.6 million in
operating income of the FSG, partially offset by a $9.8 million decrease (a 7%
decrease) to $121.6 million in operating income of the ETG. The increase in
operating income of the FSG principally reflects the previously mentioned
improved gross profit margin, net sales growth, and efficiencies realized from
the higher net sales volume. The decrease in operating income of the ETG
principally reflects a lower level of efficiencies resulting from the net sales
decrease, as well as the previously mentioned lower gross profit margin.
Further, the increase in consolidated operating income was partially offset by
$4.5 million of higher corporate expenses mainly attributable to an increase in
performance-based compensation expense and the suspension of corporate salary
reductions as of the end of the first quarter of fiscal 2021.

Our consolidated operating income as a percentage of net sales increased to
21.5% in the first six months of fiscal 2022, up from 20.0% in the first six
months of fiscal 2021. The increase principally reflects an increase in the
FSG's operating income as a percentage of net sales to 20.5% in the first six
months of fiscal 2022, up from 14.3% in the first six months of fiscal 2021,
partially offset by a decrease in the ETG's operating income as a percentage of
net sales to 26.4% in the first six months of fiscal 2022, as compared to 28.2%
in the first six months of fiscal 2021. The increase in the FSG's operating
income as a percentage of net sales principally reflects the previously
mentioned improved gross profit margin, as well as a 2.4% impact from a decrease
in SG&A expenses as a percentage of net sales mainly reflecting the previously
mentioned efficiencies. The decrease in the ETG's operating income as a
percentage of net sales principally reflects a 1.1% impact from an increase in
SG&A expenses as a percentage of net sales mainly from the previously mentioned
lower level of efficiencies, as well as the previously mentioned lower gross
profit margin.

Interest Expense

Interest expense decreased to $1.8 million in the first six months of fiscal
2022, down from $4.5 million in the first six months of fiscal 2021. The
decrease was principally due to a lower weighted average balance of borrowings
outstanding under our revolving credit facility.





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Other income

Other income for the first six months of fiscal years 2022 and 2021 was not significant.

income tax expense

Our effective tax rate was 15.0% in the first six months of fiscal 2022, as
compared to 12.0% in the first six months of fiscal 2021. The increase in our
effective tax rate principally reflects an unfavorable impact from tax-exempt
unrealized losses in the cash surrender values of life insurance policies
related to the HEICO Leadership Compensation Plan ("HEICO LCP") in the first six
months of fiscal 2022 as compared to the tax-exempt unrealized gains recognized
on such policies in the first six months of fiscal 2021, partially offset by a
larger tax benefit from stock option exercises recognized in the first quarter
of fiscal 2022. We recognized a discrete tax benefit from stock option exercises
in both the first quarter of fiscal 2022 and 2021 of $17.8 million and $13.5
million, respectively. The tax benefit from stock option exercises in both
periods was the result of strong appreciation in HEICO's stock price during the
optionees' holding periods.

Net income attributable to non-controlling interests

Net income attributable to noncontrolling interests relates to the 20%
noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings
Corp. and the noncontrolling interests held by others in certain subsidiaries of
the FSG and ETG. Net income attributable to noncontrolling interests was $15.4
million in the first six months of fiscal 2022, as compared to $11.5 million in
the first six months of fiscal 2021. The increase in net income attributable to
noncontrolling interests principally reflects improved operating results of
certain subsidiaries of the FSG in which noncontrolling interests are held,
inclusive of fiscal 2021 and 2022 acquisitions, partially offset by a decrease
in the operating results of certain subsidiaries of the ETG in which
noncontrolling interests are held.

Net income attributable to HEICO

Net income attributable to HEICO increased by 22% to $171.9 million, or $1.25
per diluted share, in the first six months of fiscal 2022, up from $141.3
million, or $1.03 per diluted share, in the first six months of fiscal 2021
principally reflecting the previously mentioned higher consolidated operating
income.












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Comparison of the second quarter of fiscal 2022 to the second quarter of fiscal 2021

Net sales

Our consolidated net sales in the second quarter of fiscal 2022 increased by 15%
to $538.8 million, up from net sales of $466.7 million in the second quarter of
fiscal 2021. The increase in consolidated net sales principally reflects an
increase of $76.0 million (a 33% increase) to $306.3 million in net sales within
the FSG, partially offset by a decrease of $5.7 million (a 2% decrease) to
$237.4 million in net sales within the ETG. The net sales increase in the FSG
reflects strong organic growth of 23% as well as net sales of $22.7 million
contributed by our fiscal 2021 and 2022 acquisitions. The FSG's organic growth
reflects increased demand for the majority of our commercial aerospace products
and services resulting from continued recovery in global commercial air travel
as compared to the prior year. As such, organic net sales increased by $30.3
million, $12.2 million and $10.8 million within our aftermarket replacement
parts, repair and overhaul parts and services and specialty products product
lines, respectively. The net sales decrease in the ETG principally reflects a 4%
decrease in organic net sales, partially offset by $5.2 million contributed by
our fiscal 2021 and 2022 acquisitions. The ETG's organic net sales decline is
mainly attributable to decreased demand for our defense products resulting in a
net sales decrease of $22.1 million, partially offset by increased demand for
our space, medical, other electronics and telecommunications products resulting
in net sales increases of $4.4 million, $4.2 million, $2.1 million and $1.9
million, respectively. Although sales price changes were not a significant
contributing factor to the change in net sales of the FSG and ETG in the second
quarter of fiscal 2022, recent cost inflation and potential supply chain
disruptions may lead to higher sales prices during the remainder of fiscal 2022.

Gross profit and operating expenses

Our consolidated gross profit margin increased to 39.2% in the second quarter of
fiscal 2022, up from 38.5% in the second quarter of fiscal 2021, principally
reflecting a 3.4% improvement in the FSG's gross profit margin, partially offset
by a .4% decrease in the ETG's gross profit margin. The increase in the FSG's
gross profit margin principally reflects the previously mentioned higher net
sales across all product lines. The reduction in the ETG's gross profit margin
principally reflects the decrease in net sales of defense products and an
increase in new product research and development expenses as a percentage of net
sales to support ongoing new product research and development activities. Total
new product research and development expenses included within our consolidated
cost of sales were $18.8 million in the second quarter of fiscal 2022, up from
$18.0 million in the second quarter of fiscal 2021.

Our consolidated SG&A expenses were $88.5 million in the second quarter of
fiscal 2022, as compared to $83.0 million in the second quarter of fiscal 2021.
The increase in consolidated SG&A expenses principally reflects $3.4 million
attributable to our fiscal 2021 and 2022 acquisitions and an increase of $3.1
million in selling expenses to support the previously mentioned net sales
growth, partially offset by a $1.1 million decrease in general and
administrative expenses.



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Our consolidated SG&A expenses as a percentage of net sales decreased to 16.4%
in the second quarter of fiscal 2022, down from 17.8% in the second quarter of
fiscal 2021. The decrease in consolidated SG&A expenses as a percentage of net
sales principally reflects the efficiencies realized from the higher net sales,
as well as a .6% impact from lower accrued performance-based compensation
expense, a .4% favorable impact from changes in the estimated fair value of
accrued contingent consideration, and a .3% impact from lower intangible asset
amortization expense.

Operating Income

Our consolidated operating income increased by 27% to a record $122.8 million in
the second quarter of fiscal 2022, up from $96.7 million in the second quarter
of fiscal 2021. The increase in consolidated operating income principally
reflects a $30.7 million increase (an 87% increase) to a record $66.2 million in
operating income of the FSG, partially offset by a $5.3 million decrease (a 7%
decrease) to $66.0 million in operating income of the ETG. The increase in
operating income of the FSG principally reflects the previously mentioned net
sales growth, improved gross profit margin, and efficiencies realized from the
higher net sales volume. The decrease in operating income of the ETG principally
reflects a lower level of efficiencies resulting from the net sales decrease, as
well as the previously mentioned lower gross profit margin.

Our consolidated operating income as a percentage of net sales increased to
22.8% in the second quarter of fiscal 2022, up from 20.7% in the second quarter
of fiscal 2021. The increase principally reflects an increase in the FSG's
operating income as a percentage of net sales to 21.6% in the second quarter of
fiscal 2022, up from 15.4% in the second quarter of fiscal 2021, partially
offset by a decrease in the ETG's operating income as a percentage of net sales
to 27.8% in the second quarter of fiscal 2022, as compared to 29.3% in the
second quarter of fiscal 2021. The increase in the FSG's operating income as a
percentage of net sales principally reflects the previously mentioned improved
gross profit margin, as well as a 2.9% impact from a decrease in SG&A expenses
as a percentage of net sales mainly reflecting the previously mentioned
efficiencies. The decrease in the ETG's operating income as a percentage of net
sales principally reflects a 1.1% impact from an increase in SG&A expenses as a
percentage of net sales mainly from the previously mentioned lower level of
efficiencies, as well as the previously mentioned lower gross profit margin.

Interest charges

Interest expense decreased to $1.0 million in the second quarter of fiscal 2022,
down from $2.1 million in the second quarter of fiscal 2021. The decrease was
principally due to a lower weighted average balance of borrowings outstanding
under our revolving credit facility.

Other income

Other income in the second quarter of fiscal 2022 and 2021 was not significant.


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income tax expense

Our effective tax rate was 23.7% in the second quarter of fiscal 2022, as
compared to 19.5% in the second quarter of fiscal 2021. The increase in our
effective tax rate principally reflects an unfavorable impact from tax-exempt
unrealized losses in the cash surrender values of life insurance policies
related to the HEICO LCP in the second quarter of fiscal 2022 as compared to the
tax-exempt unrealized gains recognized on such policies in the second quarter of
fiscal 2021.

Net income attributable to non-controlling interests

Net income attributable to noncontrolling interests relates to the 20%
noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings
Corp. and the noncontrolling interests held by others in certain subsidiaries of
the FSG and ETG. Net income attributable to noncontrolling interests was $8.1
million in the second quarter of fiscal 2022, as compared to $5.8 million in the
second quarter of fiscal 2021. The increase in net income attributable to
noncontrolling interests principally reflects improved operating results of
certain subsidiaries of the FSG in which noncontrolling interests are held,
inclusive of fiscal 2021 and 2022 acquisitions.

Net income attributable to HEICO

Net income attributable to HEICO increased by 20% to $85.0 million, or $.62 per
diluted share, in the second quarter of fiscal 2022, up from $70.7 million, or
$.51 per diluted share, in the second quarter of fiscal 2021 principally
reflecting the previously mentioned higher consolidated operating income.

Outlook

As we look ahead to the remainder of fiscal 2022, we expect global commercial
air travel to continue growing despite the potential for additional Pandemic
variants. We remain cautiously optimistic that the ongoing worldwide rollout of
Pandemic vaccines, including boosters, will continue to positively influence
global commercial air travel and benefit the markets we serve. But, it still
remains very difficult to predict the Pandemic's path and effect, including
factors like new variants and vaccination rates, potential supply chain
disruptions and inflation, which can impact our key markets. Therefore, we feel
it would not be responsible to provide fiscal 2022 net sales and earnings
guidance at this time. However, we believe our ongoing conservative policies,
strong balance sheet, and high degree of liquidity enable us to continuously
invest in new research and development, take advantage of periodic strategic
inventory purchasing opportunities, and execute on our successful acquisition
program, which collectively position HEICO for market share gains.






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Cash and capital resources

Our principal uses of cash include acquisitions, capital expenditures, cash
dividends, distributions to noncontrolling interests and working capital needs.
We now anticipate fiscal 2022 capital expenditures to be approximately $40
million. We finance our activities primarily from our operating and financing
activities, including borrowings under our revolving credit facility. The
revolving credit facility contains both financial and non-financial covenants.
As of April 30, 2022, we were in compliance with all such covenants and our
total debt to shareholders' equity ratio was 11.0%.

On April 7, 2022, we entered into an amendment to extend the maturity date of
our Revolving Credit Facility Agreement ("Credit Facility") by one year to
November 2024 and to replace the Eurocurrency Rate with Adjusted Term SOFR as an
election in which borrowings under the Credit Facility accrue interest, as such
capitalized terms are defined in the Credit Facility.

Based on our current outlook, we believe that our net cash provided by operating
activities and available borrowings under our revolving credit facility will be
sufficient to fund cash requirements for at least the next twelve months.

Operational activities

Net cash provided by operating activities was $174.8 million in the first six
months of fiscal 2022 and consisted primarily of net income from consolidated
operations of $187.4 million, depreciation and amortization expense of $46.7
million (a non-cash item), net changes in other long-term liabilities and assets
related to the HEICO LCP of $13.4 million (principally participant deferrals and
employer contributions), $6.9 million in share-based compensation expense (a
non-cash item), and $5.4 million in employer contributions to the HEICO Savings
and Investment Plan (a non-cash item), partially offset by an $87.4 million
increase in net working capital. The increase in net working capital is
inclusive of a $42.8 million increase in inventories reflecting strategic buys
within our distribution businesses and to support an increase in consolidated
backlog, a $20.3 million increase in accounts receivable resulting from the
previously mentioned net sales growth, a $15.9 million decrease in accrued
expenses and other current liabilities mainly reflecting the payment of fiscal
2021 accrued performance-based compensation, and a $9.0 million increase in
prepaid expenses and other current assets.

Net cash provided by operating activities decreased by $35.4 million in the
first six months of fiscal 2022 from $210.1 million in the first six months of
fiscal 2021. The decrease is principally attributable to a $83.8 million
increase in net working capital, partially offset by a $34.6 million increase in
net income from consolidated operations, a $10.6 million decrease in deferred
income tax benefits and a $2.6 million increase in share-based compensation
expense. The increase in net working capital primarily resulted from the
previously mentioned increase in inventories, the payment of a larger amount of
accrued performance-based compensation in the first six months of fiscal 2022
resulting from the much improved fiscal 2021 operating results, and the increase
in accounts receivable as a result of the previously mentioned net sales growth.


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Investing activities

Net cash used in investing activities totaled $144.0 million in the first six
months of fiscal 2022 and related primarily to acquisitions of $105.5 million,
capital expenditures of $16.2 million, investments related to the HEICO LCP of
$11.7 million, and $10.5 million of other investing activities. Further details
regarding our fiscal 2022 acquisitions may be found in Note 2, Acquisitions, of
the Notes to Condensed Consolidated Financial Statements.

Fundraising activities

Net cash used in financing activities in the first six months of fiscal 2022
totaled $18.1 million. During the first six months of fiscal 2022, we made $65.0
million in payments on our revolving credit facility, redeemed common stock
related to stock option exercises aggregating $23.7 million, paid $12.2 million
in cash dividends on our common stock, and made $10.6 million of distributions
to noncontrolling interests, which were partially offset by $93.0 million of
borrowings under our revolving credit facility.

Other obligations and commitments

There have been no material changes to our other obligations and commitments which have been included in our Annual Report on Form 10-K for the year ended October 31, 2021.

New accounting statements

See Note 1, Summary of significant accounting policies – New accounting standards, of the Notes to the condensed consolidated financial statements for more information.

Forward-Looking Statements

Certain statements in this report constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. All
statements contained herein that are not clearly historical in nature may be
forward-looking and the words "anticipate," "believe," "expect," "estimate" and
similar expressions are generally intended to identify forward-looking
statements. Any forward-looking statement contained herein, in press releases,
written statements or other documents filed with the Securities and Exchange
Commission or in communications and discussions with investors and analysts in
the normal course of business through meetings, phone calls and conference
calls, concerning our operations, economic performance and financial condition
are subject to risks, uncertainties and contingencies. We have based these
forward-looking statements on our current expectations and projections about
future events. All forward-looking statements involve risks and uncertainties,
many of which are beyond our control, which may cause actual results,
performance or achievements to differ materially from anticipated results,
performance or achievements. Also, forward-looking statements are based upon
management's estimates of fair values and of future costs, using currently
available information. Therefore, actual results may differ materially from


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those expressed in or implied by those forward-looking statements. Factors that
could cause such differences include: the severity, magnitude and duration of
the Pandemic; our liquidity and the amount and timing of cash generation; lower
commercial air travel caused by the Pandemic and its aftermath, airline fleet
changes or airline purchasing decisions, which could cause lower demand for our
goods and services; product specification costs and requirements, which could
cause an increase to our costs to complete contracts; governmental and
regulatory demands, export policies and restrictions, reductions in defense,
space or homeland security spending by U.S. and/or foreign customers or
competition from existing and new competitors, which could reduce our sales; our
ability to introduce new products and services at profitable pricing levels,
which could reduce our sales or sales growth; product development or
manufacturing difficulties, which could increase our product development and
manufacturing costs and delay sales; our ability to make acquisitions and
achieve operating synergies from acquired businesses; customer credit risk;
interest, foreign currency exchange and income tax rates; economic conditions,
including the effects of inflation, within and outside of the aviation, defense,
space, medical, telecommunications and electronics industries, which could
negatively impact our costs and revenues; and defense spending or budget cuts,
which could reduce our defense-related revenue. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise, except to the extent required by
applicable law.






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